Samsung C&T gains recognition as sustainable builder

Samsung C&T, the construction and trading arm of Samsung Group, has been receiving fresh attention for pulling itself out of the rut that the construction sector has been in and reestablishing itself as one of the most powerful and sustainable builders worldwide.

And the numbers are there to prove it.

In the first quarter of 2014, Samsung C&T earned roughly 3.36 trillion won ($3.29 billion) in sales and raised about 110.3 billion won in business profits for its construction sector ― an increase of 29.6 percent and 80.2 percent, respectively, when compared to the same period the year before.

Large overseas projects appear to be the main factor in the growth in company sales. 

Projects like the Riyadh metro in Saudi Arabia, Doha metro in Qatar and Roy Hill mine in Australia are all large-scale contracts largely responsible for the recent boost in sales.

Samsung C&T is also taking part in a joint venture to build a six-lane bridge stretching just over 2 kilometers to span the Mersey River in the northwestern part of England.

Work has already begun, and it is set to be completed by February 2018. Samsung C&T’s portion of the work will be worth 260 billion won ($245.9 million) of the total, which is about one-third the cost of the project.

These overseas initiatives, combined with its renewed focus on developing a wider range of business models, are part of the reason why experts believe Samsung C&T has entered the initial stages of “stable profitable growth.”

“With improvements in the rate of costs to sales, we can anticipate further growth in both sales and profit,” said Kang Seung-min, a researcher at NH Investment & Securities.

“Unlike other local construction firms, Samsung C&T is showing rapid expansion through its differentiated strategies,” he added.

Another reason behind the growing expectations for the company is its focus on safety and compliance ― the very basics of management.

According to Samsung C&T, one of its main business philosophies involves not losing sight of the fundamentals, especially safety, which is the factor it believes can ultimately keep the company and the customers on good terms.

Employee education and training, personnel management and the organizational system have also been reformed and elaborated so that all of Samsung C&T’s managers and employees are able to work together more harmoniously and effectively, the company stated.

By Kim Joo-hyun (jhk@heraldcorp.com)